What a difference just a few months make. The shift is here, and it is moving fast. We are down almost 30% on sold listings year over year. And that statistic continues to show how the buyers
Spring Has Sprung!!
Dated: May 11 2022
“Spring has sprung, and housing has too. The resilience of the housing market remains steadfast as April brought more appreciation to an already unaffordable market. We stacked up another 15% increase in median sales price across all properties year over year. An increase in days on market occurred which may show a trend change, or it may not. Days on market increased by 10% for single-family homes and a whopping 60 percent for townhomes/condos. But inventory remains tight and so far, April was a seller’s market.
“The future of real estate may change though. Inflation hit 8.5%, gas is up, food is up, and the Russia/Ukraine war continues. Consumer credit card debt and overall debt is increasing. China remains on lockdown in many of its cities and shortages across the world for goods seems inevitable. As interest rates move north, home affordability becomes an even more distant dream for many. So, while April looks great in the rear view, the biggest question is what happens as we move forward? A recent Bloomberg headline read ‘Record-low Share of Americans Say it’s a Good Time to Buy a Home.” CNBC showed that builder sentiment dropped for a fourth straight quarter, and Rocket Mortgage laid off 3000 employees -- roughly one-third of its workforce. The lending world is being dropped on its head as the easy refinancing boom, busts. REALTORS® are also seeing buyers now drop out of the market and go back to renting, locally.
“We can scan numerous housing markets nationwide on social media and watch in real time as markets begin to shift. Sure, maybe not the Pikes Peak region, yet. But we hear how showings are dropping, multiple offers are less likely and gap coverages with escalation clauses are drying up both nationwide and locally depending on price point. While out showing homes we are not standing in line as often. We can set up showings and not have swaths of the calendar not available due to heavy buyer activity. I suspect interest rates are a large part of this. Tack on the dreary daily news headlines and buyer sentiment seems to be a bit more balanced. Fear of missing out seems to be shifting as well. If I was a betting man, I believe May and June will begin to see longer days on market. You could also see the sellers who believe their time is limited to take advantage of the once ‘super hot’ market and list. And, if we are lucky enough to see more listings and less buyer demand, we may just have a balance here we have not seen in years,” said Colorado Springs-area REALTOR® Patrick Muldoon.
I have many interests and hobbies to supplement my busy career in real estate. Although I enjoy my work I also enjoy finding free time to enjoy the most important things in life. This includes being w....